Altech Technologies Limited v Mobile Telephone Networks Holdings (Proprietary) Limited and Others (81/LM/Jul08) [2009] ZACT 9; [2009] 1 CPLR 109 (CT) (9 February 2009)

Altech Technologies Limited v Mobile Telephone Networks Holdings (Proprietary) Limited and Others (81/LM/Jul08) [2009] ZACT 9; [2009] 1 CPLR 109 (CT) (9 February 2009)

Altech intervened in the merger proceedings on broad and speculative grounds, causing the merging parties to incur costs in responding to a shifting set of concerns. The intervention was ultimately withdrawn on the eve of the hearing, after Altech received a letter of comfort from MTN, but without any tender for costs. The Tribunal found that Altech's conduct—seeking intervention on open-ended grounds, failing to comply with procedural requirements for witness statements, and withdrawing at the last minute—justified a costs award against it. The merging parties were entitled to recover their costs on a party and party scale, including the costs of one counsel. The Tribunal noted its...

Citation
[2009] ZACT 9
Parties
Applicant: Altech Technologies Limited; Respondent: Mobile Telephone Networks Holdings (Proprietary) Limited; Respondent: Verizon SA (Proprietary) Limited; Respondent: The Competition Commission
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 February 2009
Case Number
81/LM/Jul08
Procedural Posture
Intervention Application / Costs Order Following Withdrawal of Intervention
Outcome
Costs awarded against Altech Technologies Limited in favour of the merging parties on a party and party scale, including costs of one counsel.
Judges
N Manoim, U Bhoola, Y Carrim
Legal Topics
Intervention in Merger Proceedings, Costs Award, Vertical Theories of Harm, Withdrawal of Application
Competition Law Civil Procedure Intervention in Merger Proceedings Costs Award Vertical Theories of Harm Withdrawal of Application

Case Brief

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Parties

Altech Technologies Limited

Applicant

Mobile Telephone Networks Holdings (Proprietary) Limited

Respondent

Verizon SA (Proprietary) Limited

Respondent

The Competition Commission

Respondent

Procedural Posture

Intervention Application / Costs Order Following Withdrawal of Intervention

Legal Issues

  1. 1 Whether Altech's intervention in the merger proceedings justified a costs award against it.
  2. 2 Whether the merging parties are entitled to costs following Altech's withdrawal of its intervention application.
  3. 3 Whether the scope and conduct of Altech's intervention was reasonable and substantiated.

Ratio Decidendi

Altech intervened in the merger proceedings on broad and speculative grounds, causing the merging parties to incur costs in responding to a shifting set of concerns. The intervention was ultimately withdrawn on the eve of the hearing, after Altech received a letter of comfort from MTN, but without any tender for costs. The Tribunal found that Altech's conduct—seeking intervention on open-ended grounds, failing to comply with procedural requirements for witness statements, and withdrawing at the last minute—justified a costs award against it. The merging parties were entitled to recover their costs on a party and party scale, including the costs of one counsel. The Tribunal noted its...

Court Disposition

Costs awarded against Altech Technologies Limited in favour of the merging parties on a party and party scale, including costs of one counsel.

Orders

  • Altech Technologies Limited is ordered to pay the costs of the merging parties, including the costs of one counsel, on a party and party scale.